CHENNAI: In a significant move, Tamil Nadu on Monday exempted battery-operated vehicles from payment of Motor Vehicle Tax till the end of 2022. Hyundai vice-president BC Datta reacted saying the 100 per cent tax exemption was in line with an Electric Vehicle Policy the State released last year. “We welcome the initiative. It will help sell more electric vehicles in the State,” Datta said.
Hyundai launched India’s first electric SUV, Kona, in July last year at an introductory price of Rs 25.3 lakh. “Ten per cent of the cost is usually charged as motor vehicle tax. But, the State was providing 50 per cent exemption back then. So, the tax, which was around Rs 2.3 lakh was reduced to Rs 1.65 lakh. Now, even that has been dropped. The car will be cheaper by Rs 1.65 lakh,” said Datta.
“The new notification will prompt more EV makers and battery makers to set shop in our State,” said Industry Secretary N Muruganandam. “Hyundai has a battery-operated vehicle in the market already. Nissan too is coming up with a new model. The State government is making the environment conducive to pump in more investments in the sector,” he said.
That apart, Chinese manufacturer BYD is planning to invest around Rs 2,800 crore in the State to make EV components and batteries. Ather Energy, leader in the e-scooter market, is also planning to invest in a facility near Chennai.
A Government Order issued by Transport Secretary S K Prabhakar stated that in exercise of powers conferred under Section 20 of Tamil Nadu Motor Vehicles Act, 1974 – and in supersession of Home Department notification of Part II Section 2 of Tamil Nadu Gazette Notification dated October 1, 2008 – the governor exempted the battery-operated vehicles, both transport and non-transport, from payment of Motor Vehicle Tax from November 3, 2020 to December 31, 2022.